Atlanta Buckhead Midtown
- Mortgage Matters -
PMI vs MIP
PMI vs MIP - what is the difference? Basically, both are Mortgage Insurance.
Private Mortgage Insurance is abbbreviated as PMI. Lenders require it to limit their risk when the loan they make is for more than 80% of the home’s value. Both the Borrower's Credit Score and the Loan To Value (LTV) ratio determine the amount of PMI paid with the monthly Loan Payment.
Mortgage Insurance Premium is abbreviated as MIP or perhaps as MI. When an FHA Loan requires Mortgage Insurance, the name is different since the Insuring Agency is the Department of Housing and Urban Development (HUD), not a private company.